The Ban will Not Stop Exports of Key Raw Minerals Copper, Zinc, Iron Ore from Indonesia, But Bauxite Shipments will Stop in June

According to foreign news on May 24, the Indonesian mining minister told parliament on Wednesday that although the export ban will be implemented in June, Indonesia will allow the export of some raw ore to continue.

The resource-rich country had planned to ban all metal ore exports to encourage investment in domestic processing industries.

But exports of copper, iron ore, lead, zinc and anode mud from copper concentrates will be allowed until smelters, many of which were delayed by the pandemic, are ready to handle the materials, said Energy and Mineral Resources Minister Arifin Tasrif.

He said a premature ban on the export of these materials would cost the country revenue and employment.

Companies whose smelters were 50% complete in January will be allowed to continue exporting and they will be required to pay export duties, Arifin said.

Indonesian authorities said they would exempt copper miners Freeport Indonesia and Nusa Tenggara Amman Mining from the ban as their smelter developments were also delayed by the outbreak.

However, exports of bauxite will stop in June, Arifin said, as the four existing smelters can absorb the ore that was intended to be exported.

“By optimizing processing at these four smelters, there will be an additional $1.9 billion in export value … so the government will still see a net gain,” he said.

He likewise noted that seven of the eight bauxite processing plants currently under construction were found to be “open area only”, although progress reports from these companies stated that they were 66% complete.

Indonesia’s ban on nickel exports in 2022 has rattled global markets.

But the ban has led to an influx of investment, helping to boost the value of the country’s exports.
Source: SMM